MILWAUKEE, Wis. — President Donald Trump is granting a one-month exemption for U.S. automakers from new tariffs on imports from Mexico and Canada.
The decision came after he met with leaders of America's Big Three automakers. A 25% tariff on all goods from the two countries went into effect Tuesday.
Prospective car buyers are being told to act fast, with dealers saying prices will increase by thousands of dollars.
"I am deeply relieved, to be honest, because I feel like I just hit it at the right time," Emily Kopp said.
Kopp decided it was time to buy a new car this past Thanksgiving.
"I had a 10-year-old car, and I was on the fence about upgrading. I had paid it off, and I didn't necessarily need a new car, but I was worried about tariffs," Kopp said.
Watch: Car buyers and experts react to price increases following Trump tariffs
Tariffs that would have likely impacted Kopp if she had waited to buy.
Even if a car is "American-made," Jim Tolkin said, many car parts are made outside the U.S.—something Kopp realized when she purchased her new car, a Volkswagen, with parts from the U.S., Canada, Mexico and Japan.
"And then you also impose tariffs on the importing of steel and aluminum, which will further increase the price of those vehicles. So, vehicles produced all over the world will be affected," Tolkin said.
Tolkin is the president of the Auto Dealers Association of Metro Milwaukee. He said the average price of a car, now $45,000 to $50,000, is about 20% higher than it was five years ago.
With additional tariffs, he said, things are going to get worse.
"Everything is going to go up significantly and quickly," Tolkin said.
From low-end to high-end cars, Tolkin said buyers could see an additional $2,700 to $15,000 price increase.
"That's not great. It seems like every year we hear that wages aren't going up with the price of everything else. I don't think the average person could stomach that price increase," Kopp said.
Experts say they are urging customers to buy now.
"I feel like I hit the right time to buy. Do your research as much as you can, and if you can, take a look at that sticker when you're at the lot. You might need to make your decision sooner rather than later," Kopp said.
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